Only Registered Gift Deed of Property Is Valid
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Only Registered Gift Deed of Property Is Valid

Comments(10) Sub Category:Property Posted On: May 12, 2011

It is invalid if a gift of a property is not registered. Documents should be stamped and registered as required, and attested by two witnesses.

A Gift Deed is a legal document that states how much you received, from whom and when. Any person who is competent to contract can gift his property. The person transferring the property is called the donor and the person accepting the gift is the Donee. A minor cannot be a donor but can be a Donee. If the property is gifted to a minor, on behalf of a minor, a natural guardian can accept a gift containing a condition that the person nominated in the gift deed will act as a manager of the gifted property. The person making the gift and the one receiving must both sign the gift deed.

Valid Gift of Immovable Property

A gift of immovable property, which is not registered, is bad in law and cannot pass any title to the Donee. A valid gift of property can be made only by a registered instrument. According to section 123 of The Transfer of Property Act, it is invalid if a gift of a property is not registered. Documents should be stamped and registered as required, and attested by two witnesses. There are some conditions to be met to make a gift of property valid as specified by the Transfer of Property Act. Following are the conditions to be met to make a gift of property valid.

  1. A transfer of property must be voluntary and made gratuitously.
  2. It must satisfactorily appear that the donor knew what he was doing and understood the contents of the instrument and its effect.
  3. Documents should be stamped and registered as required, and attested by two witnesses.
  4. A valid gift of property can be made only by a registered instrument.
  5. The Person to whom the property is being transferred (Donee) must accept the property during the lifetime of the donor. If the Donee dies before accepting the gift, the gift becomes void.
  6. A minor cannot be a donor but can be a Donee. If the property is gifted to a minor, on behalf of a minor, a natural guardian can accept a gift.
  7. If the gift is onerous, the obligation cannot be enforced against him while he is a minor. But later, he must either accept the burden or return the gift.
  8. The gift of property must be without any consideration, absolute and unconditional except when made for a specific purpose. If there is any consideration in any shape, there is no gift.
  9. Any person who is competent to contract can gift his property. Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is sound mind and is not disqualified from contracting by any law to which he is subject.
  10. The person offering the gift and the one receiving must both sign the gift deed.

Gift deed procedure

There is no specific procedure to receive a gift. But do accept the gift in writing. You can do this via a gift deed. According to section 123 of The Transfer of Property Act, it is invalid if a gift of immovable property is not registered. Immovable property is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings.

Gift deed of immovable property compulsorily registered and the transfer must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses. A Gift Deed may be executed to the Blood Relations and Third Parties. However, the Person to whom the property is being transferred (Donee) must accept the property during the lifetime of the donor. If the Donee dies before accepting the gift, the gift becomes void.

Gift deed Documents

Following are the list of documents (enclosures) required to be produced at the time of presentation of the document before the jurisdictional Sub-Registrar.

  • An Identical copy of the Gift-deed containing name and details of Donor and Donee, property Details and property value in the prescribed format of Gift Deed.
  • Statement of particulars of property and its market value.
  • Parent Document (prior to title deeds)
  • Title Deeds to show how the Donor gets the property.
  • Encumbrance Certificate of the property
  • Affidavit which state that Registration of this document does not violate the notification issued under Section 22A of the Registration Act, 1908.
  • Extract of assessment register of the property.
  • If the property is an agricultural land, No objection certificate from Tahasildar.

A gift is the transfer of property by one person to another made voluntarily and without consideration. In order to constitute a valid gift, a basic requirement is acceptance. If a document of gift, after its execution or registration in favor of the donee, is handed over to him by the donor, it amounts to a valid acceptance of the gift. The gift must be an existing property. It cannot be a future property.

Section 126 of the Transfer of Property Act provides that a gift may be revoked if some conditions are met. The donor and donee must have agreed that the gift will be suspended or revoked on the happening of a specified event. A gift which was not based on fraud, undue influence, misrepresentation or an onerous one, cannot be cancelled unilaterally. Such a gift deed can be cancelled only by resorting to legal remedy in a court of law.

Disclaimer: The article contains data collected from various sources and the use of same is at readers discretion.

 
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    10 Responses to “Only Registered Gift Deed of Property Is Valid”

    1. Adv. Mudasser Ahmed says:

      With due respect…. a gift if not registered is not invalid in all cases….
      According to mohammedan law one can make an oral gift also which will be perfectly valid

    2. amitava sarkar says:

      I sold one house which was built by me long time before and from the sale proceeds I purchased a flat jointly with my son. The balance total amount from the sale proceeds I put in Capital Gain Bond in SBI under Capital Gain Scheme. Now, I want to gift my portion of the flat to make my son the absolute owner of the flat.The question is now: 1)Can it be possible for me to gift my portion to my only son. What would be the Regn.percentage as Regn. fees on the valuation of the flat. 2) Can I make the premature payment for purchase of another flat in my own name from the Capital Gain Bond from SBI. What is your legal openion and what is the impact on my Income Tax also. Please suggest.

    3. Sir, This is note I want some clarification on Gift Deed.
      Donner written an Gift Deed in favor his grand Son.(Elder Son)
      This Gift Deed written by a Advocate, in which only Elder Son and his Son name declared. in spite his other Family Name, so it is to be clarify, that this Donner have no other in the Family, And it surprising that Witness both Advocates Father & his Son. One Son & Three Daughter name not mentioned in the Gift Deed. and will not be cancelled before written the Gift Deed, The Donne will registered his name after the death of Donner(after 12 Days)ago. Either Family member not known, it is already know,Donner was already registered Will in which Registered in 2003.
      It is to bring your kind attn. pl. after the death of Donner Wife a Gift Deed was forced his elder son and his family members in dec.2010 & after his death march 2012 in april 2012,4th he entered his name in Nagar Nigam, after challenge Nagar Nigam change his name on April 30th, in the name of Donner.
      I am resident of Haryana, Please send your commitment.

    4. Dolce says:

      Thank you with this marvelous post!

    5. sri says:

      I need an information:

      1. Can an elder sister make a gift deed of agricultural land to her younger sister (siblings)?
      2. What are the conditions to be satisfied while making such gift deed, to get it approved by Tahasildar?
      3. Suppose the youger sister is married and if her annual income is more that Rs. 2.00 lakh, can she receive the gift deed from her own sister?

      Please answer these questions.

      SRI

    6. I WOULD LIKE TO KNOW MY FATHER NAME PROPERTY WANT TO GIFT FOR ONLY TWO SONS WHO INVESTED FINANCE ON THE PROPERTY REMAINING 3 BROTHERS & 5 SISTERS DOES’NT WANT ANY THING FROM PROPERTY LET ME KNOW THE DETAILS & FEE FOR REGISTRATION IN HYDERABAD -ANDHARA PARDESH – INDIA

    7. I WOULD LIKE TO KNOW MY FATHER NAME PROPERTY WANT TO GIFT FOR ONLY TWO SONS WHO INVESTED FINANCE ON THE PROPERTY REMAINING 3 BROTHERS & 5 SISTERS DOES’NT WANT ANY THING FROM PROPERTY LET ME KNOW THE DETAILS & FEE FOR REGISTRATION IN HYDERABAD -ANDHARA PARDESH – INDIA

    8. pacifica quartet says:

      Great topic. I must spend some time learning much more or understanding more. Thanks for excellent info I used to be searching for this information for my mission.

    9. manoj pathak says:

      after making gift deed required to take NOC from blood relation to transfer property

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